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Gold gains, silver powers to 4-year peak Monday

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(Kitco News) Gold and silver prices are higher in midday U.S. trading Monday, with silver hitting a nearly four-year high just of $20.30. There has been a steady flow of safe-haven and chart-based buying in the two precious metals recently. August gold futures were last up $7.10 an ounce at $1,817.20. September Comex silver prices were last up $0.421 at $20.185 an ounce. 

Global stock markets were mixed Monday. China’s mainland stock market rallied as that country’s economy is shifting into a higher gear from it’s late-winter lockdown. The U.S. stock indexes were mixed at midday in New York. The debate in the U.S. is intensifying on whether to roll back the opening of businesses in some states that are experiencing a spike in Covid-19 cases and as public schools are set to reopening in a few weeks. More than 140,000 Americans have died from the virus. This week, the $600 government unemployment checks many American workers were getting expires, unless Congress extends the benefits. The U.S. Congress returns to work this week and will debate another round of stimulus measures for American workers. Attention of the marketplace is also on a contentious meeting of European Union officials regarding a Covid-19 economic recovery plan. The officials have been meeting since Friday to hammer out a plan but have yet to do so. All of the above have taken risk appetite out of much of the marketplace.

The important outside markets today see Nymex crude oil prices near steady and trading around $40.60 a barrel. The U.S. dollar index is slightly weaker at midday. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.61% level. 

There was no major U.S. economic data released Monday. 

Technically, August gold futures prices were near mid-range at midday and not far below the nine-year high scored two weeks ago. The bulls have the strong overall near-term technical advantage, to suggest still more upside in the near term. Prices are in a six-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price objective is to produce a close above technical resistance at $1,850.00. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,779.20. First resistance is seen at today’s high of $1,823.40 and then at the July high of $1,829.80. First support is seen at today’s low of $1,806.60 and then at $1,800.00. Wyckoff's Market Rating: 8.5

Live 24 hours gold chart [Kitco Inc.]

September silver futures were nearer the session high at midday. The silver bulls have the strong overall near-term technical advantage to suggest still more upside. Prices are in a four-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $20.55 an ounce. The next downside price objective for the bears is closing prices below solid support at $18.50. First resistance is seen at today’s high of $20.30 and then at $20.55. Next support is seen at $20.00 and then at today’s low of $19.655. Wyckoff's Market Rating: 8.5.

Live 24 hours silver chart [ Kitco Inc. ]

September N.Y. copper closed up 130 points at 291.90 cents today. Prices closed near mid-range today. The copper bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at today’s high of 294.40 cents and then at 297.60 cents. First support is seen at today’s low of 288.15 cents and then at 285.00 cents. Wyckoff's Market Rating: 8.0.

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